| TO: | Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means |
| FROM: | John S O'Brien, Director, Legislative Budget Board |
| IN RE: | SB1927 by Zaffirini (Relating to the authority of certain volunteer firefighter and emergency services organizations to hold tax-free sales or auctions.), As Engrossed |
The bill would amend Chapter 151 of the Tax Code, regarding the sales and use tax and the authority of certain volunteer firefighter and emergency services organizations to hold tax-free sales or auctions.
The bill would add new Subsection (c-1) to Section 151.310 to provide that an organization exempt under Section 151.310(a)(4) may hold 10 tax-free sales or auctions during a calendar year, each not to continue for more than 72 hours. Items purchased tax-free under this subsection would not be subject to use tax under Subchapter D of this chapter until the item is resold or transferred. This new subsection would expire September 1, 2014.
The bill would take effect immediately if it receives the requisite two-thirds votes in each house. Otherwise it would take effect September 1, 2011.
Comptroller tax data indicate that fiscal 2010 state sales tax remittances from volunteer fire and volunteer fire/EMS organizations exempt under Section 151.310(a)(4) were not sufficient to represent a significant reduction in sales tax revenues if some fraction of those sales become tax-free due to the bill's provisions.
| Source Agencies: |
| LBB Staff: | JOB, KK
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